The Thai Cabinet has recently approved the Royal Decree No. 793 B.E. 2568 (2025) which provides substantial tax incentives. This aims to attract highly skilled Thai professionals working abroad to return to Thailand and work in the targeted industries in order to support the economy’s growth by offering personal income tax reductions and corporate tax benefits for individuals and the companies that will employ them.
The personal income tax rate for individuals employed by the targeted industries is reduced to 17% whole companies operating in targeted industries are entitled to 50% corporate income tax exemption on salary expenses paid to qualified employees. This exemption applies to salaries paid from 25 March 2025 (the enforcement date) until 31 December 2029.
To be eligible for reduction and exemption of taxes and duties, the taxpayers must meet the following criteria.
For individuals:
- Must be of Thai nationality
- Completed at least a bachelor’s degree
- Must have a minimum 2 years work experience abroad
- Must have not previously worked in Thailand during the application year and must not have been a tax resident of Thailand in the past 2 years
- Must be employed by a company in a targeted industry, entered in Thailand to begin employment between 25 March 2025 and 31 December 2025.
- Stayed in Thailand for at least 180 days in the tax year which the reduced tax rate is applied, except for the first or final year of eligibility
- Complied with all conditions set by the Director-General of the Revenue Department
For Employers (Companies or Juristic Partnerships)
- Must operate in a targeted industry as defined by relevant laws
- Must notify the Revenue Department before payment of first salary to the eligible individual. The tax reduction will be applied from the notification date
- Ensure salary expense has not been used for any other tax incentive claims
For personal and corporate income tax filing and more information on Thai tax laws, contact MSNA for further consultation.